Is Colombia's Central Bank thinking about outlawing Bitcoin?

A report produced by the Superintendencia Financiera de Colombia (SFC), the country’s central bank, hints that the South American nation could be getting ready to outlaw all Bitcoin-related operations.

According to ElTiempo.com, the document will warn about the risks that cryptocurrency can bring to the financial sector and also prohibit all transactions connected to the digital coin. Although Bitcoin is still not extremely popular in Colombia, the financial authority is apparently concerned with the virtual phenomenon.

The circular is scheduled to be issued during next Tuesday (25), stating that all cryptocurrencies are illegal in the country. The Colombian Finance Minister, Mauricio Cardenas, said that the institution has been working on the document for several weeks in partnership with the Central Bank and the Superintendency.

“The state is the one that has a monopoly over money. Our currency is reliable, safe and generates no risk, while other forms of money do not have the same level of support and guarantees”, Cardenas said during a recent speech. The document about to be released will warn the public about the risks of dealing with Bitcoin and other digital currencies. The circular also intends to inform the public that cryptocurrencies are not a payment option recognized in the country.

Cesar Corredor, from the University of La Salle, told ElTiempo.com that Bitcoin has the potential to be used as a means of payment, but “not to make money, not even to speculate”.